Ex-independent director of healthcare group charged with cheating

A dispute between a company and its former lead independent director has ended with him facing criminal charges.

Christopher Chong Meng Tak, 62, a Malaysian, was charged yesterday with two counts of cheating in relation to an allegedly dishonest acquisition deal.

As the independent director of women's and children's healthcare group Singapore O&G, Chong is alleged to have negotiated a deal in 2015 which saw the group pay $26.5 million to buy the medical business of a Dr Joyce Lim Teng Ee.

But he did not disclose that part of the money paid out by Singapore O&G in the deal - $1.5 million - would go to wholesale firm Paromay, of which he is also director.

He then falsely represented to private bank Julius Baer that he had received the $1.5 million as "shadow equity" when he deposited the money in Paromay's account, the Corrupt Practices Investigation Bureau (CPIB) said in court documents.

"Shadow equity" gives an employee the right to receive compensation based on the value of a company's stock.

Chong, who joined Singapore O&G as a director in May 2015, resigned from the board on Dec 26, 2017. The group had previously tried to claw back the $1.5 million from him.

He was offered bail of $100,000 yesterday and is expected back in court on March 26.

CPIB said in a statement that companies should be wary of "rogue employees seeking personal gains", advising robust procedures in areas such as procurement and internal audit.

If found guilty of cheating, Chong could be jailed for up to three years, fined, or both.